The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1887-12-10
An Urgent Call to Congress
to Reduce the Treasury
Surplus.
4he Present Tariff Laws Characterized
Is Vicious, lnequltahG and
Illegal.
Opposition to the Repeal OF
the Whisky and To-
bacco Tax.
RECOMMENDATIONS TO CONGRESS.

To the Congress- OF tho United States:
You arc confronted at tho threshold OF your
legislative duties with condition OF the ma
tionaI finances which imporatively demands
Immediate and careful consideration.
The amount Of money annually exacted.
TIN ough the operation Of present laws. from the
industries and necessities Of the people. largely
exceeds the sum necessary to meet the sxl'
genciss OF the Government.
When We consider that the theory OF our In
situations guarantees to every oitizon the ful!
enjoy OF all tho fruits Of bis industry and
enterprise, with only such deduction - may De
his share toward the careful and economical
maintenance of the Government which protects
him him Il i' plain that tho '1a'ti0n OF more than
MpRYESsIBLK ExToRrioS.
and q culpabls betrayal OF American fairness
and justice. This wrong inflicted upon those
who bear the burden OF national taxation. like
other wrongs. multipliss . brood OF evil eonse.
quences. The public treasury. which should
only exist % q conduit conveying the people .
tribute TO its Legitimate offsets OF eIpsndi-
turs, becomes q boarding place for money
needlessly Withdrawn from trade and the poo
pies use, thus gripping our national energies
suspending our countrys development. pre-
venting Investment in productive enterprises.
threatening financial disturbance. and IN
viting schemes OF public plumber. This
condition OF our Treasury 10 not altogether
new and IL has more than once OF late been
submitted 10 the peoples representatives In the
Congress, who alone can apply the remedy. And
yet ths situation still continues, with agra
vatsd Incidents. more than ever presasing imam
cial ooavulsions and widespread disaster.
Il will not do 70 neglect this situation because
fts dangers are not nov palpably imminent and
apparent They sxtSt none the less certainly
aid await the unfoEPseen. unexpected occasion
who's suddenly they will b precipisAked upon
On the Goth day OF June 1895. The excess Of
revenues over public expenditures, after com
plying with the annual requirement OF the
80 q Aur fNnk hA
NAr ended juno D. 1885, such excess amounted
b SO, ~, Us. 20. and during tho year ended
Jane ~. 1857. il reached this sum Of eS5.S o.
6o.A.
The annual contributions 10 tho sinking fund
during the three years above specified amount
Ing IN tbs aggregate 10 tl3s, 0's, s2Q9t, and de-
dEcted from thSsurplus as stated were made
b. calling in for thai purpose outstanding three
Per cent bonds Of the Government During the
Elk months PRIOR 70 June ". 1887. tho
SURPLUS REVENUE
had grown % large by repeated Accommodations.
and IL WA feared the withdrawal OF this RroAt
sum Of money needed by the people would
80 AFFECT the business Of the country. that the
sum of S79. s54, 100 OF such surplus was ap-
piled b the payment Of the principal and
interest OF the three per cent bonds still
outstanding, and which were then pay
able at the option OF the Government.
The prscArious condition OF financial affairs
among the people still needing relief, ifnnedi-
stsly after the sotn day Of June, 1887. the re-
ing, amounting, with principal and interest to
the sum Of SIS. ST.. 500. were called in and sp-
Piled TO the sinkn8-lund contribution for the
currant fiscal year. Notwithstanding these op-
erat!ohs OF the Treasury Department, represen-
tatiops OF distress in business circles not only
continued but increased, and absolute peril
seemed at hand. In these circumstances the
contribution to the sinking-fund for the current
the expenditure Of 81, ssi, 5SSSs in
tho purchase Of Government bonds
not vat. dual r,t.E int In
premium paid thereon averaging about "a per
cent. for the former AMI per cent. for tho lat
ter. In addition to this, tho interest accrung
during the present year upon the outstanding
bonded indebtedness OF tho Government was 10
some extent anticipated, and banks selected as
repositories Of public money were permitted to
somewhat increase thor deposits,
While the o1pedienta thus employed to re-
lease to tho people the money lying idle In the
treasury served to avert Immediate danger. our
surplus revenues have continued to accumulate,
tho oxccss for tho present year amounting ON
the FIRST day OF December to S55, 2js 70l.l9. and
estimated to reach the sum of Sis 900 900 on the
30th Of Juno next, Mt which date IL Is expected
that this sum, added to prior accumuations,
will swell the surplus IN the Treasury to $780,
90 900.
There seems to DO no assurance that with
such II withdrawal from use OF the peoples Or
culating medium our business may not in the
near future DO subjected to tho same distross
which was quite lately produced from the same
cause. And while the functions OF our Nation
al treasury shOull DO teW ana simple, ana
while it's best condition would DO reached,
believe, by its entire disconnoction with pri-
ynto business interests, yot WHOM by q perver-
sion OF its purposes, 1t idly holds money useless
ly subtracted from the channels of trade, there
seems to DO reason for the claim that some
legitimate means should be devised by the
Government to restore in an emergency with
out waste or extravaganza, such money to ito
place among the people.
II such an emergency arises there now exists
no clear and undoubted executive
POWER OF RELIEF.
Heretofore the redemption OF per cent bonds,
which were payable at the option OF the Gov
eminent, has afforded a means for tho disburse-
Inent OF tho excess OF our revenues; but those
bonds have all been retired. and there arc no
bonds outstanding the payment OF which wo
have the right to insi st upon. Tho contribution
TO tho sinking fund which furnishes the occa-
sion for expenditure IN the purchase OF bonds
has been already made for tho current year. so
that there 10 no outlet IN that direction.
In the present state Of legislation the only
pretenss OF any existing executive power to
restore at this time any part OF our surplus to
supposiVon that the Secretary OF tho Treasury
may enter the market and purchase the bonds
OF the Government not yet due at rate Of pre-
MUM 70 be agreed upon.
The only provision OF law from which such
power could BE- derived ID found in an appropr-
stioA bill passed number OF years ago and II
as temporary. and limited In its application In.
stead OF comforting continuing discretion and
authority. No condition ought To exist which
would justify tho grant VI power to = single
official. upon his judgment OF its necessity, to
withhold from or release to the business
Of the people, in All unusual manner,
money held In the Treasury, aud thus
Affect at his WILL the financial situation OF tho
country; and II IL is deemed wise to lodge in
the Secretary Of tho Treasury the authority in
the present juncture TO purchase bonds, IL
should b plainly vested. and provided. as far
as possible, with such checks and Limitations
a. viii define this official right and discretion
and at The same time relieve him from undue
responsibility.
In oonsidering the question Of
PURCHASING BONDS
a means Of restoring TO circulation the sur.
plus money scoumulstlng In the Treasury, II
should be borne in mind that premiums must,
Of course, be paid upon such purchase that
there may b large part OF those bonds held
40 investments which cannot DO purchased 81
any price. and that combinations among hold.
.en who are willing 70 sell may unreasonsbly
enhance the cost OF such bonds 70 the Govern.
mSnA
Il has been suggested that the present bonded
debt might b. refunded at less rsss Of interest
end ths difference between the old and new
security paid In cash. thus finding use for thu
surplus IN tbs Treasury Tho success OF thil
plan, 70 10 apparent, must depend upon the voii
ton Of the holders Of the present bonds; and u
ID NOT entirely certain that the inducemeni
1hish must b offered them would result In